Armani nears stake sale one year after founder’s death

One year to the day after Giorgio Armani died at age 91, the Italian fashion house that bears his name is entering what industry observers call its most consequential chapter — a period that will test whether the brand can evolve beyond its founder while preserving the identity he built over five decades.

Armani stipulated in his will that an initial sale of roughly 15% of the company should take place between 12 and 18 months after his death, followed by the disposal of a larger stake or a stock market listing, according to Reuters. The process, with Rothschild acting as financial adviser, is expected to accelerate in the coming weeks, though two people close to the matter told Reuters the deadlines are not strictly binding and a deal could be postponed if market conditions do not support an adequate valuation.reuters

A Brand at a Crossroads

The company spent the past year focused on corporate governance rather than transformation, a strategy that consultants now say carries its own risks. "Continuity is the right choice to get through the first year. It becomes, or could become, a risk if it turns into inertia," said Francesco Fiorese, a partner at consultancy Simon Kucher.fashionnetwork+1

Sales declined 2.8% at constant currencies to €2.2 billion over the past year, with the broader luxury sector weighed down by the war with Iran and weakening Chinese consumer spending. CEO Giuseppe Marsocci, a long-serving group executive, said at an event in July that Armani would not pursue short-term fixes and remains in a transitional phase, working alongside new board members including former Gucci CEO Marco Bizzarri.reuters+1

"The great challenge will be maintaining the balance between the identity that defines us and the inevitable evolution we will have to pursue," Marsocci said.reuters

Suitors Circle

Armani's will named LVMH, EssilorLuxottica, and L'Oréal as potential buyers. Bankers and advisers consulted by Reuters valued the group at roughly €5 billion to €7 billion.reuters

Each potential buyer brings different motivations. For L'Oréal and EssilorLuxottica, a stake would help protect licensing agreements that generated nearly €2 billion in combined revenue last year. L'Oréal told Reuters it would "study this opportunity" but has little interest in entering the fashion business, focusing instead on safeguarding a beauty licence running until 2050. EssilorLuxottica would consider only a small holding, potentially in partnership with other bidders.devdiscourse+1

LVMH, the only suitor large enough to integrate fashion, eyewear, and beauty under one roof, has closely examined a standalone investment, but its preference for controlling the brands in its portfolio could complicate matters — particularly if the heirs opt for an IPO instead.reuters

What Comes Next

Marsocci pointed to a joint venture to develop new Armani Hotels & Resorts as a signal of the company's future direction. The group held €500 million in net cash at the end of 2025, giving it financial breathing room as it navigates negotiations.freemalaysiatoday+1

As Gonzalo Brujó, CEO of consultancy Interbrand Global, noted, the licensing partnerships with L'Oréal and EssilorLuxottica remain profitable, and demand for accessible entry points like accessories and beauty products continues to grow even as consumer spending tightens.reuters